{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,4,6]],"date-time":"2026-04-06T08:55:07Z","timestamp":1775465707050,"version":"3.50.1"},"reference-count":65,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"5","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2025,5]]},"abstract":"<jats:p> Firms have inefficiently low incentives to innovate when other firms benefit from their inventions and the innovating firm therefore does not capture the full surplus of its innovations. We show that, in theory, common ownership of firms mitigates this impediment to corporate innovation. By contrast, without technological spillovers, innovation has the effect of stealing market share from rivals and in that case more common ownership reduces innovation. Empirically, the association between common ownership and innovation inputs and outputs decreases with product market proximity and increases with technology proximity. The sign and magnitude of the overall relationship between common ownership and corporate innovation thus varies considerably across the universe of firms depending on their relative proximity in technology and product market space. Some of these results persist if we use only variation from BlackRock\u2019s acquisition of BGI. Our findings inform the debate about the welfare effects of increasing common ownership among U.S. corporations. <\/jats:p><jats:p> This paper was accepted by Joshua Gans, business strategy. <\/jats:p><jats:p> Funding: The authors acknowledge grant funding from the Washington Center for Equitable Growth. M. Ant\u00f3n acknowledges the financial support of the Department of Economy and Knowledge of the Generalitat de Catalunya [Ref. 2014 SGR 1496] and the Ministry of Science, Innovation, and Universities [Ref. PGC2018-097335-A-I00]. M. Schmalz acknowledges funding from Deutsche Forschungsgemeinschaft under Germany\u2019s Excellence Strategy [EXC 2126\/1-390838866]. <\/jats:p><jats:p> Supplemental Material: The online appendix and data files are available at https:\/\/doi.org\/10.1287\/mnsc.2024.04363 . <\/jats:p>","DOI":"10.1287\/mnsc.2024.04363","type":"journal-article","created":{"date-parts":[[2024,8,16]],"date-time":"2024-08-16T11:45:18Z","timestamp":1723808718000},"page":"3713-3733","source":"Crossref","is-referenced-by-count":33,"title":["Innovation: The Bright Side of Common Ownership?"],"prefix":"10.1287","volume":"71","author":[{"given":"Miguel","family":"Ant\u00f3n","sequence":"first","affiliation":[{"name":"IESE Business School, 08034 Barcelona, Spain"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-3018-7908","authenticated-orcid":false,"given":"Florian","family":"Ederer","sequence":"additional","affiliation":[{"name":"Questrom School of Business, Boston University, Boston, Massachusetts 02215; and Centre for Economic Policy Research (CEPR), London EC1V 0DX, United Kingdom; and European Corporate Governance Institute (ECGI), 1000 Brussels, Belgium; and National Bureau of Economic Research (NBER), Cambridge, Massachusetts 02138"}]},{"given":"Mireia","family":"Gin\u00e9","sequence":"additional","affiliation":[{"name":"IESE Business School, 08034 Barcelona, Spain; and Centre for Economic Policy Research (CEPR), London EC1V 0DX, United Kingdom; and European Corporate Governance Institute (ECGI), 1000 Brussels, Belgium; and WRDS, Philadelphia, Pennsylvania 19104"}]},{"given":"Martin","family":"Schmalz","sequence":"additional","affiliation":[{"name":"Centre for Economic Policy Research (CEPR), London EC1V 0DX, United Kingdom; and European Corporate Governance Institute (ECGI), 1000 Brussels, Belgium; and University of Oxford Sa\u00efd Business School, Oxford OX1 1HP, United Kingdom; and CESifo, 81679 Munich, Germany; and C-SEB, 50923 Cologne, Germany"}]}],"member":"109","reference":[{"key":"B2","doi-asserted-by":"publisher","DOI":"10.2307\/2951599"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1257\/aer.103.1.277"},{"issue":"2","key":"B4","first-page":"701","volume":"120","author":"Aghion P","year":"2005","journal-title":"Quart. 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